The High Court in Lautoka has allowed a Nadi-based company, Amira Furnishings Pte Ltd, to contest winding-up proceedings brought by Chinese company Fashion Import & Export Development (Guangzhou) Co Ltd. The decision stems from findings by Justice Mohamed Azhar, who determined that the winding-up action was being misused by the applicant as leverage to secure payment from the respondent.
Fashion Import & Export Development claimed that Amira Furnishings was insolvent due to its failure to meet a statutory demand. In response, Amira Furnishings, led by its director Mourtada Moussa Makki, sought permission to oppose these winding-up proceedings. The court examined affidavits submitted by both parties, revealing a complicated relationship between Mr. Makki and Aiping Wen, referred to as Ms. Holy, which included attempts to initiate a joint retail venture specializing in curtains that ultimately did not materialize.
During the hearing, Mr. Makki described Ms. Holy as a family friend, highlighting her cooking for him and her access to his computer for business purposes. Justice Azhar noted that the core issue was not the company’s insolvency but rather the attempt by Ms. Holy to use legal action as a means of coercing payment. The judge indicated that Amira Furnishings presented sufficient evidence to demonstrate its solvency.
The court ultimately granted Amira Furnishings the ability to challenge the winding-up effort. Importantly, Justice Azhar ordered that both parties bear their own legal costs in this matter.
This ruling reflects the court’s careful consideration of the circumstances surrounding the legal challenges faced by businesses in Fiji. The outcome serves as a reminder of the necessity for transparency and fairness in financial disputes, and it underscores the judiciary’s role in evaluating the legitimacy of claims made in the context of commercial relationships. The decision is expected to foster a more equitable environment for resolving similar disputes, promoting accountability and responsible corporate governance.